TERMS OF LOANS.

SEC. 4043. TERMS OF LOANS. (a) Amendment.— Section 428 of the Act (20 U.S.C. 1078) is amended— (1) in subsection (b)(1)(D), by striking “be subject to” through the semicolon and inserting “be subject to income contingent repayment in accordance with subsection (m);”; and (2) in subsection (m)— (A) by amending paragraph (1) to read as follows: “(1) Authority of secretary to require.— The Secretary shall require at least 10 percent of the borrowers who have defaulted on loans made under this part that are assigned to the Secretary under subsection (c)(8) to repay those loans under an income contingent repayment plan, the terms and conditions of which shall be established by the Secretary and the same as, or similar to, an income contingent repayment plan established for purposes of part D of this title.”; and (B) by striking paragraphs (2), (3), and (4) and inserting the following new paragraph: “(2) Loans for which income contingent repayment may be required.— A loan made under this part may be required to be repaid under this subsection if the note or other evidence of the loan has been assigned to the Secretary pursuant to subsection (c)(8).”. (b) Effective Date.— The amendments made by this section shall take effect on July 1, 1994.